Advice You - Finance

The APR or Annual Percentage Rate was introduced by the Government to make it easier to compare the true cost of loans, mortg

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ages, overdrafts, etc and enable consumers to see at a glance who was offering the best rates. Sadly, many of the financial

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

institutions in the market place seem to have differing views on the exact makeup of the APR, often resulting in inaccurate d

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ata being presented.

What Is The APR And How Is It Calculated

In essence the APR should represent the true cost of any loan

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

, the equivalent interest rate you pay when taking into account all charges associated with the loan. Well, that is the prin

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

cipal behind the APR figure but even though it was introduced by the Government these quoted rates are not monitored by any o

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

fficial body, and are often open to abuse.

The makeup of the APR figure includes such information as :-

· the basic rate of

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

interest
· initial fees to set up the transaction
· when interest is charged (daily, weekly, monthly)
· plus

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

any other costs associated with the transaction (e.g. compulsory insurance cover, etc)

Sounds simple? In theory it is very s

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

imple but it depends how the information is presented and above all, the small print. For example you may see the following

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ffers in the press :-

· We offer loans at rates as low as 6% APR.
· We offer loans at rates as low as 5.9% APR (plu

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

s a ?100 initial set-up fee)

Initially your eyes would be drawn to the lower APR of 5.9%, but would you notice the extra ini

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

tial charge of ?100? When taken into account in the APR (as it should be) the extra charge may well push the “true” APR over

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

6%, making it more expensive than the flat 6% APR (which seems to include ALL charges). This is the kind of slight of hand t

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

hat some financial institutions will use to draw in business.

Why Do Some Institutions Use This Tactic?

There are two reaso

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ns why some financial institutions may use this form of “calculation” :-

1. To catch the eye of the consumer in the

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

street, or an existing banking client.
2. To rise to the top of the financial comparison tables.

The financial ma

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

gazines and trade press are very influential and crucial elements of the financial industry. The many companies in the marke

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

t will fight tooth and nail to get there services and offerings in the top league tables.

Once you have walked through the d

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

oor, or contacted the financial institution in question, they have done the hard part. Next stage……selling you “A” product….

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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